Craven County audit finds clean opinion; LGC flagged overspends requiring 60-day response

Craven County received an "unmodified" audit opinion for fiscal year 2025, the county's auditors told the Board of Commissioners on Feb. 16.

Hunter Wiseman, presenting the audit, said the firm audited the county's financial statements in conformity with government auditing standards and issued the highest level of assurance: an unmodified opinion. "Unmodified being a clean opinion or the highest level of assurance, which is what Craven County received," Wiseman said.

Wiseman reviewed key financial metrics: a general fund total fund balance of $69,300,000 and an available fund balance of about $52,900,000. He said general fund expenditures, including transfers, were about $152,100,000 and that the largest revenue source was ad valorem taxes. The property tax rate was reported in the presentation as 0.445 with a collection percentage of about 99.29%.

The auditors reported no financial statement findings but detailed one compliance finding (Finding 2025-001). Wiseman said the Local Government Commission (LGC) will expect a board-adopted response within 60 days to financial-performance concerns identified in the presentation. He called out two stewardship issues that prompted that expectation: overspending in the representative payee fund by $32,000 and overspending in the tourism authority fund by $89,000. "Neither of these items were considered a budget violation and did not rise to the level of a finding," he said, but they still warrant the LGC response.

Wiseman also highlighted recent and upcoming Governmental Accounting Standards Board (GASB) changes: Statements 101 and 102 were adopted by the county; GASB 103 (financial reporting model improvements) and 104 (capital-asset disclosures) will require additional work from finance staff for FY2026 reporting.

Commissioners praised the presentation and emphasized the county's continuing support for education, which the auditor's slide showed receives the largest share of general fund expenditures (about 22%). The presentation and board discussion closed with the auditor noting good cooperation with county management and that the county will return with responses required by the LGC.

What happens next: the board must adopt and send the LGC response within the 60-day period noted by auditors; auditors recommended steps on certain receivables and liability reviews to avoid future stewardship issues.